The silver coin’s value is determined by different factors depending on whether the coin is of numismatic or of bullion character. There are two types of silver coins: silver bullion and silver numismatic coins. Each of these particular types has their advantages and disadvantages to both the collector and investor.
Silver bullion coins are typically minted by the government that offers a sound return on your investment. Silver bullion coins are minted in a variety of weights and the silver coins value is determined by the weight of a particular coin and the spot price of the silver on a given day, including a dealer premium. The silver coin’s value is usually affected by the demand of the coin – if the demand is high among investors, this may lead to higher dealer premiums. Silver bullion coins are traded by a plethora of different countries such as the Canada, China, Mexico, Russia and the United States. Investors find the liquidity factor an advantage when considering investing in these types of coins. Silver bullion coins are also great to have on hand for survival purposes in the event of flat currency collapse enabling you to pay for day-to-day supplies. One of the disadvantages, however, of silver bullion coins is the high premium that is associated with them. In addition, silver bullion coins tarnish easily which may affect their value, therefore it’s important to handle your coins only with gloved hands and store them in properly protected boxes or cases. Since silver bullion coins investment is much more bulkier compared to its gold counterpart, you might also end up paying higher storage fees for it.
Silver numismatic coins are coins that are usually preferred by collectors, although one can invest in them as well. The silver coin’s value of numismatics is assessed on a grading scale, rarity and demand factors. The grade the numismatic coin is given ranging from mint state to what is deemed as the perfect silver coin. In order to invest well in silver numismatic coins, an investor must be very knowledgeable as they pose a high risk. Investors need to know more than just the facts about numismatics when considering investing in them. Similar to art and fine wines, silver numismatic coins investors often face the possibility of collectors who have held their silver numismatics for a long time, coming into the marketplace for a speedy return on their initial investment. When this happens, the silver coins value of the numismatics will drop. This disadvantage is what often steers investors away from silver numismatic coins. Another disadvantage of silver numismatic coins is the types of scams that are associated with them since they are collector’s items. Due to their high scam rate, knowing the ins and outs of silver numismatic coins is important to the collector and the investor.
Silver bullion coins and silver numismatic coins are interesting in their appeal. These particular coins can be highly profitable if adequately researched by either the collector or investor. It is important to consider the advantages, such as the silver coins value; and disadvantages such as potential cons when investing or purchasing these types of coins.